March sees an increase in road transport prices after previous declines.
- Haulage and courier prices rose by 3.2 points overall in March.
- A year-on-year rise in haulage prices contrasts with the previous months.
- Increasing fuel prices linked to a rise in oil prices impact the freight sector.
- Government budget changes on fuel duty could affect future price trends.
In March, road transport prices began to climb as reported by the TEG Index, which tracked a 3.2 point rise to 117.7. This followed a period of lower prices in January and February, highlighting typical annual trends post-peak season.
Both haulage and courier services experienced price hikes, with haulage prices increasing by 2 points and courier services by 2.5 points. However, year-on-year analysis shows a more marked variation, with courier prices rising by 1 point and haulage prices by a notable 4 points.
Fuel prices continued their upward trend for a second consecutive month, driven by escalating oil prices. Petrol increased by 1.86%, and diesel by 1.91% in March. Despite this, diesel remains 7.4% cheaper than in March 2023, offering some reprieve.
The introduction of the recent Spring Budget brought anticipated positive changes, particularly in fuel duty adjustments. However, uncertainties linger regarding the impending implementation of new post-Brexit border controls, due by the end of April, prompting calls for governmental guidance to mitigate supply chain disruptions.
The transport sector continues to face significant challenges, exacerbated by the collapse of numerous haulage firms recently. While the fuel duty freeze provides relief, industry voices are advocating for further financial measures, such as temporary suspensions of the HGV Levy and incentives for alternative fuels.
Looking ahead, stakeholders should prepare for a potential upswing in prices linked to the ongoing rise in fuel costs. Though current price adjustments have not been dramatic, the intrinsic link between fuel and freight costs underscores their future interdependence.
The road transport sector braces for further changes with interconnected fuel and freight price dynamics.
